Private banks power $2.97b remittance surge in August

Bangladesh’s remittance inflow roared back in August, rising 3.8 per cent month-on-month and 22.5 per cent year-on-year to nearly $3 billion, as private commercial banks emerged as the dominant channel for migrant workers’ money.

The country received $2.97 billion in remittances in August, up from $2.86 billion in July, according to Bangladesh Bank data released on Tuesday.

The latest surge takes total remittance earnings to $5.83 billion in the first two months of the current 2026-27 fiscal year, strengthening the country’s foreign-exchange position at a time when external stability remains crucial for the economy.

August’s performance was particularly striking compared with a year earlier. Remittance inflows stood at $2.42 billion in August 2025, meaning receipts jumped by around 22.5 per cent, or more than $540 million, over the year.

Private commercial banks were at the heart of the remittance boom, accounting for $2.23 billion, or about three-quarters of total inflows in August.

State-owned commercial banks received $433.46 million, while specialised banks brought in $291.91 million. Foreign commercial banks accounted for just $6.74 million.

The dominance of private banks was underscored by the performance of the country’s leading remittance-receiving institutions.

Islami Bank Bangladesh topped the list by a wide margin, receiving $550.89 million in August. Bangladesh Krishi Bank followed with $291.91 million, while Agrani Bank received $162.08 million, Dutch-Bangla Bank $156.75 million and Dhaka Bank $148.43 million.

The five banks together received around $1.31 billion, equivalent to nearly 44 per cent of Bangladesh’s total remittance inflow during the month.

Islami Bank alone accounted for almost one-fifth of the country’s August remittances, maintaining a commanding lead over all other banks. Its inflow was more than three times that of Agrani Bank, the third-largest recipient.

Among the other major recipients, Sonali Bank received $139.91 million in August.

The sustained strength of remittances in the opening months of FY27 is providing an important cushion for Bangladesh’s external sector, boosting the supply of foreign currency through formal banking channels and helping reinforce confidence in the country’s balance-of-payments position.

The sharp year-on-year increase also suggests that a growing share of migrant workers’ earnings is continuing to enter the country through official channels, strengthening the formal foreign-exchange market.

With remittances already reaching $5.83 billion in just two months, the inflow has emerged as one of the strongest early pillars of Bangladesh’s external-sector stability in the new fiscal year.